Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
This quarter's free cash flow improved compared to the preceding quarter but was lower than the same quarter one year earlier. The cash conversion strengthened sequentially, driven by higher operating cash flow relative to revenue.
- Revenue increased from the prior quarter, and operating cash flow grew at a faster pace, resulting in a higher free cash flow margin. Capital expenditure was slightly lower, further supporting free cash flow.
- Compared to the preceding quarter, free cash flow and margin improved significantly. However, compared to the same quarter one year earlier, both operating cash flow and free cash flow were lower, leading to a weaker margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$325.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$431.0M
Cash generated by operations before capital spending.
CapEx
$106.0M
Capital spending and related asset purchases.
FCF margin
7.8%
The share of revenue converted into free cash flow.
Cash flow trend
A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.
| Period | Revenue | Operating CF | CapEx | FCF | FCF margin |
|---|---|---|---|---|---|
| 2024-09-30 | $3.9B | $628.0M | $125.0M | $503.0M | 12.9% |
| 2024-12-31 | $4.1B | $849.0M | $165.0M | $684.0M | 16.8% |
| 2025-03-31 | $3.6B | $209.0M | $120.0M | $89.0M | 2.4% |
| 2025-06-30 | $4.2B | $431.0M | $106.0M | $325.0M | 7.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 59.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$15.4B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Operating Cash Flow Growth
Operating cash flow increased compared to the preceding quarter, outpacing revenue growth and driving higher free cash flow. The company's productivity initiatives, as noted in the filing, supported this improvement.
This improvement was the primary factor behind the sequential increase in free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from the prior quarter, and operating cash flow grew at a faster pace, resulting in a higher free cash flow margin. Capital expenditure was slightly lower, further supporting free cash flow.
Compared to the preceding quarter, free cash flow and margin improved significantly. However, compared to the same quarter one year earlier, both operating cash flow and free cash flow were lower, leading to a weaker margin.
Monitor the effectiveness of productivity initiatives in sustaining margin improvement.